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L. 

h 

Hon. C. Woodrow Laughlin 

County Attorney 

Jim Wells County 

Alice, Texas 

Dear Sir: 

Opinion No. O-5491 

Re: If real property conveyed 

to the State of Texas ata 

tax sale, is sold to an individual, would the purchaser be required to 

pay any State, county and 

school taxes that were 

delinquent at the time of 

the judgment? 

We have your letter requesting an opinion by this department. The letter is as follows: 

“In 1932. the Sheriff of Jim Wells County conveyed 

to the State of Texas certain property at a tax sale, as there 

were no bidders that would bid a sufficient amount for said 

property. Subsequent to this time, this property has been 

assessed against the State of Texas on the Tax Rolls of Jim 

Wells County. 

“I now propose to sell said property as provided 

by Article 7345b. Seetion9, Revised Civil Statutes of Texas, 

and I would like to have your opinion upon the following 

questions, towit: 

“(1) If this property is sold to an individual, would 

he be required to pay any State, County and school taxes 

that were delinquent at the time of the judgment in 1932? 

“(2) Would this purchaser be required to pay any 

taxes that have accrued on this property since it has been 

dwded to the state 7 

“(3) Would the purchaser be required to pay anything else besides the amount bid at the Sheriffus Sale ? 
Hon. C. Woodrow Laughlin, page 2 (0 -5491) 

“‘Article 7345b. Section 9, Revised Civil Statutes 

of Texas, provides in part as follows: ‘If the property 

be sold to any taxing unit which is a party to the judgment under decree of court in said suit, the title to said 

property shall be bid in and held by the taxing unit purchasing same for the use and benefit of itself and all 

other taxing units which are parties to the suit and which 

have been adjudged in said suit to have tax liens against 

such property, pro rata and in proportion to the amount 

of the tax liens in favor of said respective taxing units 

as established by the judgment in said suit, * 4: *.’ 

“Article 7345b, Section 10, Revised Civil Statutes 

of Texas, provides in part as follows: “The purchaser of 

property sold for taxes in such foreclosure suit shall take 

title free and clear of all liens and claims for ad valorem 

taxes against such property delinquent at the time of judgment in said suit to any taxing unit which was a party to 

said suit, or which had been served with citation in said 

suit as required by this Act. * * 4: ’ 

“In view of the above and foregoing authorities, 

it is the opinion of this department that all of the questions asked should be answered in the negative. In other 

words, where property is sold as provided by Article 

7345b, Section 9, the purchaser receives title free and 

clear from any liens for taxes whatsoever, and is not required to pay any taxes until the year following.’ 

We note that in your letter you state the land in question was 

conveyed to the State by the Sheriff of Jim Wells County at a tax sale in 

1932. The copy of the deed in question, which you sent us in response to 

our request for additional information, appears to be dated the 3rd day d 

September, 1931. and to have been acknowledged by the sheriff on the 22nd 

day of October, 1931. The copy of the judgment rendered in the case shows 

the judgment to have been granted on the 18th day of February, 1931. 

Article 7345b. V.A.C.S. of Texas, was enacted in 1935 by 

the 44th Legislature. Sections 2. 5. and 10 of said article were amended 

in 1941 by Acts of the 45th Legislature. In our opinion No. o-5506 (a 

copy of which is enclosed for your information) we held that when a tax 

sale has been had in full compliance with the terms of said Article 7345b. 

the purchaser of the property so sold for taxes in such foreclosure suit. 

takes the title thereto free and clear of all liens and claims for ad valorem taxes against the property delinquent at the time of the judgment in 

the said suit as against any taxing unit which was a party to the suit, or 

which had been served with citation in the suit, as required by said Article 7345b. In said opinion we further held that in any case, where at the 

time of the judgment referred to there were any unpaid assessments for 

maintenance and operation purposes on a pro rata per acre basis against 
_- 

. ~. I 

Hon. C. Woodrow Laughlin, page 3 (O-5491) 

any irrigable land authorized by law to be made for water improvement 

districts, or water control and improvement districts, the collection of 

said assessments ‘or the liens securing the same would not be prejudiced 

by said judgment. 

But it is obvious that the provisions of said Article 7345b 

are not applicable to the judgment inquired about by you, for the reason 

that said article was not in force at the time said judgment was obtained. 

It is elementary that a judgment is only binding on those who are parties 

to the suit in which the judgment was rendered. Insomuch as an inspection of the copy of the judgment which you sent us discloses that no taxing units other than the State and county were parties to the suit in question, you are advised that any taxing unit other than the State and county 

would not be bound by said judgment; their rights would not be affected 

thereby, and any tax liens subsisting in their favor at the time of the 

judgment would not be extinguished by the force of said judgment. 

Article 7336f, Sec. 1, was enacted in 1935 by the 44th Legislature, and is as follows: 

‘The collection of all delinquent, ad valorem taxes 

due the State, county, municipality or other defined subdi; 

visions that were delinquent prior to Dec. 31. 1919, is forever barred.” 

By reason of the foregoing quoted statute, we need to consider in this opinion only the effect of the instant judgment on such taxes 

as have become delinquent since Dec. 31, 1919. as the collection of those 

which became delinquent before that date is “forever barred.* 

Writing upon the quality of title acquired by a purchaser at 

a tax foreclosure sale, Texas Jurisprudence has this to say: 

“‘Referring to the title acquired by purchaser at a 

tax foreclosure sale, the statutes provide, that when the 

land has been paid for, the sheriff shall execute a deed 

‘.cnmm*eg title ‘, and~~that “such;deed shall be held in any 

court of law DF equity in this State to vest good and perfect title in the purchaser thereof, subject to be impeached 

only for actual fraud.’ Therefore, and seeing that the foreclosure proceeding is a suit in rem. it has been held that 

if all parties having an interest in the land were joined as 

defendants an estate in fee simple passes to the purchaser 

free from any lien for taxes for the taxing years prior to 

those for which foreclosure was decreed, in the absence 

of any reservation of such lien in the judgment of foreclosure - subject, however, to the rights of any persons who 

had some interest and therefore should have been impleaded as parties in the tax foreclosure suit.m (40 Tex. Jur. 

307-308, Section 229. citing Ball v. Carroll, 92 SW. 1023, 
. . 

Hon. C. Woodrow Laughlin, page 4 (O-5491) 

error refused; State Mortgage Corp. v. State, 9 S.W. (2d) 

271. judgment reformed, Commission of Appeals, 17 SW. 

(2d) 801; State v. Lile, Civ. App., 212 S. W. 517; Ivey v. 

Peichman, Civ. App., 201 S. W. 695; error dismissed; 

City of Houston v. Barkley. Civ. App., 68 S.W. 730. error 

refused) 

We understand our Commission of Appeals to hold in the 

case of State Mortgage Corp. v. State, 17 S.W. (2d) 801. (cited above) 

that each annual assessment of taxes evidences a “special lien” on the 

land on which the assessment was made; that this special lien by force 

of the statutes continues in existence until the lien liability “shall be 

paid.” That the statutory provisions to the effect that the special lien 

continues in existence until the tax liability shall be paid. is modified 

by the effect of that merger of lien and title which occurs when the State 

itself finally takes the land in payment of taxes for a particular year. 

Applying this doctrine to the case you inquire about, we 

have this situation: 

(a) The State reduced the State and county delinquent taxes 

for the year 1928 to judgment, and 

(b) did not sue for any State and county taxes for any year 

other than 1928. 

(c) The State bought said land for said taxes, and 

(d) has held same until the time for exercising the equity 

of redemption has expired. 

The result is - 

(a) The State now owns said land (See Booty et al. v. State, 

149 S.W. (2d) 216) and has the legal title thereto. 

(b) The State’s lien for any taxes due it and delinquent at 

the time of the judgment, but not sued for, has now merged with the State’s 

said title; and 

(c) A sale now of the State’s title would pass a title to the 

purchaser which would be free of all tax liens existing against said property for delinquent State and county taxes, at the time of the judgment’s 

rendition. 

There is,no provision of Texas law whereby land belonging 

to the State, purchased by it at a tax sale, may be taxed while so belonging to the State. You are therefore advised that no taxes in favor of any 
Hon. C. Woodrow Laughlin, page 5 (O-5491) 

taxing unit have legally accrued against the land in question subsequent 

to its purchase by the State. 

Approved Nov. 3. 1943 

/s/ Grover Sellers 

First Assistant 

Attorney General 

Very truly yours 

ATTORNEY GENERAL OF TEXAS 

By /s/ George P. Blackburn 

George P. Blackburn 

Assistant 

GPB:AMM/cm 

ENCLOSURE 

APPROVED 

Opinion 

Committee 

BY /s/AW 

Chalrman